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- Ethereum on exchanges has seen a 50% drop since the COVID sell-off.
- The current supply of Ethereum stands at 17.8 million coins.
- There is an increasing preference for holding Ethereum off exchanges.
The Ethereum market has witnessed a significant decrease in on-exchange supply, with a staggering 50% drop since the COVID sell-off. As of now, the current supply of Ethereum on exchanges stands at 17.8 million coins, highlighting a growing trend of holding Ethereum off exchanges.
During the sell-off period, exchanges held approximately 33 million Ethereum coins. However, recent data indicates a substantial decline in on-exchange supply, suggesting a shift in strategy among investors and traders. This shift involves a preference for storing Ethereum in personal wallets or exploring decentralized finance (DeFi) platforms.
Several factors contribute to this rising trend. Increased risk awareness among market participants, coupled with the expanding opportunities in DeFi, has led to a stronger inclination towards holding Ethereum off exchanges. Moreover, Ethereum’s growing adoption in decentralized applications (DApps) and non-fungible tokens (NFTs) has further fueled the demand for off-exchange storage solutions.
By holding Ethereum off exchanges, investors gain greater control over their assets, reduce counterparty risks associated with centralized platforms, and unlock the potential offered by DeFi protocols. This strategic approach allows participants to actively engage in lending, staking, and other innovative financial services within the Ethereum ecosystem.
In conclusion, Ethereum on exchanges has witnessed a significant 50% drop since the COVID sell-off, with the current supply standing at 17.8 million coins. This decline reflects an increasing preference for holding Ethereum off exchanges, driven by risk awareness, the rise of DeFi, and the expanding role of Ethereum in the world of decentralized applications and non-fungible tokens.